URBAN ECONOMIC POLICY

URGING A NATIONAL MEETING OF STATE AND LOCAL ELECTED LEADERS ON TAX REFORM

WHEREAS, several major trends are having a significant impact on state and local governments as we approach the twenty-first century: all national, state and local economies are being integrated into the global economy; major industries such as telecommunications and banking have been deregulated; and the Internet, telecommunications and technology are making electronic commerce increasingly more convenient for consumers all over the world; and

WHEREAS, federal, state and local tax systems have not kept pace with these changing economic trends, and global competition is generating greater pressure for national and international uniformity in tax rules and tax rates; and

WHEREAS, federal, state and local tax systems are closely linked and while there is currently overlap in tax sources of the three levels, it is still true that the federal tax base is primarily payroll and income taxes, the state tax base is primarily sales and excise taxes, and the local tax base is primarily property taxes; and

WHEREAS, a number of proposals have been introduced in Congress to reform the federal tax system, and during the next two years Congress is expected to began considering major tax reform proposals including a flat tax, national sales tax, value-added tax, eliminating the Internal Revenue Service and broadening the current income tax base; and

WHEREAS, leaders at all levels of government could benefit from an exchange of ideas and views in an open forum on how state and local governments will be impacted by these changing economic trends and pending tax reform proposals,

NOW, THEREFORE, BE IT RESOLVED that The U.S. Conference of Mayors urges national organizations representing state and local governments to convene a meeting of state and local elected leaders to discuss the impact of changing trends in the global economy and pending tax reform legislation on state and local governments.

BE IT FURTHER RESOLVED, that a copy of this resolution be sent to the National Governors’ Association, National Association of Counties, National League of Cities, National Conference of State Legislatures, and the Council of State Governments.